Turkey’s currency crisis became full-ﬂedged in August amid an ongoing withdrawal of global liquidity stemming from continued monetary tightening in the U.S. as well as lasting economic policy mistakes. In particular, the Central Bank of the Republic of Turkey (CBRT) did not raise interest rates in late July despite surging inﬂation, which called its independence again into doubt; and a political feud with the U.S. culminated in the latter imposing sanctions on Turkey.